DSM-Firmenich First Look: First Look: 1Q EBITDA -24%, no improvement in trading conditions in 2Q

1Q adj. EBITDA dropped by 24% and was slightly below our and consensus forecasts with results impacted by low vitamin prices, high cost inflation and low volumes (partly on destocking and deliberate decisions). DSM does not expect an improvement in trading conditions in 2Q. The merger with Firmenich is fully on track with DSM-Firmenich holding 96.1% of DSM shares and the Firmenich contribution scheduled for 8 May. We consider the merger to be a good strategic fit. The combination will enlarge the portfolio with a leading position in fragrances and strengthen the offering in food and beverages by adding ao Firmenich's expertise in taste. DSM-Firmenich will be a global powerhouse with a well-balanced portfolio and solid growth prospects. We keep our Accumulate rating and € 160 TP.